Lkq Corporation v. Gm Global Technology Operations LLC

Procedural entryThis page is a short order in Lkq Corporation v. Gm Global Technology Operations LLC. Read the opinion of the Court — 102 F.4th 1280
Court of Appeals for the Federal Circuit·Decided January 20, 2023·No. 21-2348·Unpublished

Opinion

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit

LKQ CORPORATION, KEYSTONE AUTOMOTIVE INDUSTRIES, INC.,

Appellants

v.

GM GLOBAL TECHNOLOGY OPERATIONS LLC, Appellee

2021-2348

Appeal from the United States Patent and Trademark Office, Patent Trial and Appeal Board in No. IPR2020- 00534.

Decided: January 20, 2023

MARK A. LEMLEY, Lex Lumina PLLC, New York, NY, argued for appellants. Also represented by MARK P. MCKENNA; ANDREW HIMEBAUGH, BARRY IRWIN, IFTEKHAR ZAIM, Irwin IP LLC, Chicago, IL.

JOSEPH HERRIGES, JR., Fish & Richardson P.C., Minneapolis , MN, argued for appellee. Also represented by JOHN A. DRAGSETH; NITIKA GUPTA FIORELLA, Wilmington, DE; LAURA E. POWELL, Washington, DC.

2 LKQ CORPORATION v.

GM GLOBAL TECHNOLOGY OPERATIONS LLC

Before LOURIE, CLEVENGER, and STARK, Circuit Judges.

Opinion for the court filed PER CURIAM.

Additional views filed by Circuit Judge LOURIE. Opinion concurring in part and concurring in judgment filed by Circuit Judge STARK.

PER CURIAM.

LKQ Corp. and Keystone Automotive Industries, Inc.

(collectively, “LKQ”) appeal from a final written decision of the U.S. Patent and Trademark Office Patent Trial and Appeal Board (“the Board”) holding that LKQ failed to show by a preponderance of the evidence that U.S. Patent D797,625 (the “’625 patent”) was anticipated or would have been obvious over the cited prior art before the effective filing date. See LKQ Corp. v. GM Glob. Tech. Operations LLC, IPR2020-00534, Paper 28 (P.T.A.B. Aug. 4, 2021) (“Decision”), J.A. 1–60. For the reasons provided below, we affirm.

BACKGROUND

GM Global Technology Operations LLC (“GM”) owns the ’625 patent, which is directed to an “ornamental design for a vehicle front fender” as shown below.

LKQ CORPORATION v. 3 GM GLOBAL TECHNOLOGY OPERATIONS LLC

GM manufactures and sells automotive vehicles. LKQ sells automotive body repair parts for most mainstream vehicle models available, including front fenders for vehicles manufactured by GM. GM and LKQ had previously been parties to a license agreement, under which LKQ was granted a license to many of GM’s design patents. The license agreement expired in February 2022 following a breakdown of renewal negotiations, after which GM sent letters to LKQ’s business partners alleging that the now unlicensed LKQ parts infringe its patents.

LKQ petitioned for inter partes review of the ’625 patent , asserting that it was anticipated by U.S. Patent D773,340 (“Lian”) and would have been obvious over Lian alone or in combination with the design of the 2010 Hyundai Tucson as disclosed in a promotional brochure (“Tucson ”). The Board issued a final written decision concluding that LKQ had not demonstrated by a preponderance of the evidence that the ’625 patent was anticipated or would have been obvious before the effective filing date. Decision, J.A. 1–60.

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GM GLOBAL TECHNOLOGY OPERATIONS LLC

First, the Board determined that the ordinary observer would include both retail consumers who purchase replacement fenders and commercial replacement part buyers. Decision, J.A. 20–23. In so doing, the Board emphasized that the “’625 design claims a ‘vehicle front fender,’ not a vehicle in total.” Decision, J.A. 21.

Second, applying that understanding of the ordinary observer, the Board concluded that, although there were some similarities between the claimed design and Lian, there were a number of key differences, including: (1) the wheel arch shape and terminus, (2) the door cut line, (3) the protrusion, (4) the sculpting, (5) the first and second creases, (6) the inflection line (i.e., third crease), and (7) the concavity line. Decision, J.A. 30–45. The Board found that these differences in the claimed features contributed to different overall appearances in the design. Id. For example, the Board found that the claimed design’s sculpting and crease pattern contributed to a smooth, curved overall appearance , whereas Lian depicted substantially linear, angled lines. Decision, J.A. 43. The Board was ultimately not persuaded that an ordinary observer would be deceived into purchasing the Lian front fender supposing it to be the claimed fender, finding no anticipation. Decision, J.A. 45.

Third, applying the tests established in Rosen and Durling, the Board found that LKQ failed to identify a sufficient primary reference, and therefore failed to prove obviousness by a preponderance of the evidence. Durling v. Spectrum Furniture Co., Inc., 101 F.3d 100 (Fed. Cir. 1996); In re Rosen, 673 F.2d 388 (C.C.P.A. 1982); Decision, J.A. 48–58. Because the Board found that Lian did not qualify as a proper primary reference under Rosen, the Board did not turn to Durling step two and look beyond Lian to Tucson . Decision, J.A. 58.

In summary, the Board concluded that LKQ had not demonstrated that the claimed design of the ’625 patent was anticipated or would have been obvious before the

LKQ CORPORATION v. 5 GM GLOBAL TECHNOLOGY OPERATIONS LLC

effective filing date. LKQ appealed. We have jurisdiction under 28 U.S.C. § 1295(a)(4)(A).

DISCUSSION

LKQ raises two main challenges on appeal. First, LKQ contends that the Board erred in finding that the ordinary observer would include only retail consumers who purchase replacement fenders and commercial replacement part buyers, and, ultimately, in finding no anticipation. Second, LKQ contends that the Rosen and Durling tests on which the Board relied in its obviousness analysis have been implicitly overruled by the Supreme Court’s decision in KSR International Co. v. Telflex, Inc., 550 U.S. 398 (2007). We address each argument in turn.

We review the Board’s legal conclusions de novo and its factual findings for substantial evidence. Campbell Soup Co. v. Gamon Plus, Inc., 939 F.3d 1335, 1339 (Fed. Cir. 2019). Anticipation is a question of fact reviewed for substantial evidence. Id.; Int’l Seaway Trading Corp. v. Walgreens Corp., 589 F.3d 1233, 1237 (Fed. Cir. 2009). The ultimate determination of obviousness is reviewed de novo, and any underlying factual findings are reviewed for substantial evidence. Campbell Soup Co. v. Gamon Plus, Inc., 10 F.4th 1268, 1275 (Fed. Cir. 2021). Substantial evidence is “such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.” Consol. Edison Co. v. N.L.R.B., 305 U.S. 197, 229 (1938).

I

As an initial matter, GM raises a threshold issue, contending that LKQ lacks standing to appeal and forfeited the opportunity to demonstrate otherwise by not presenting any evidence or argumentation on the issue in its opening brief. Standing requires an “injury in fact,” meaning evidence of “an invasion of a legally protected interest which is (a) concrete and particularized, and (b) actual or imminent, not conjectural or hypothetical.” Lujan v. Defs.

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of Wildlife, 504 U.S. 555, 560 (1992) (quotation marks and citations omitted). If a party is “currently engaged in conduct creating a substantial risk of infringement,” standing may exist. Gen. Elec. Co. v. Raytheon Techs. Corp., 983 F.3d 1334, 1341–42 (Fed. Cir. 2020).

We find that LKQ did establish that it has standing.

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